Operating Margin - Grifols SA (OTC:GIFLF)

Watchlist Manager

Watchlist

Price: 13.9 USD -0.71%

Market Cap: 9.4B USD

18.1%

Current

13%

Average

-4.2%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

18.1%

Operating Profit

1.4B

Revenue

7.5B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
ES		Grifols SA MAD:GRF	7.4B EUR	18%
FR		Pharnext SCA OTC:PNEXF	6T USD	-17 527%
US		Abbvie Inc NYSE:ABBV	404.4B USD	33%
US		Amgen Inc NASDAQ:AMGN	178.3B USD	34%
US		Gilead Sciences Inc NASDAQ:GILD	155.5B USD	39%
US		Vertex Pharmaceuticals Inc NASDAQ:VRTX	116.6B USD	39%
US	E	Epizyme Inc F:EPE	94.1B EUR	-370%
US		Regeneron Pharmaceuticals Inc NASDAQ:REGN	82.7B USD	28%
AU		CSL Ltd ASX:CSL	83B AUD	26%
US		Alnylam Pharmaceuticals Inc NASDAQ:ALNY	52.5B USD	8%
NL		argenx SE XBRU:ARGX	44.1B EUR	22%

Grifols SA
Glance View

Economic Moat

None

Market Cap

9.4B USD

Industry

Biotechnology

Grifols SA, a global healthcare giant based in Barcelona, Spain, has carved its niche in the world through its pioneering work with plasma-derived medicines. Founded in 1940, the company has grown from a small family business into one of the world leaders in the production and development of biopharmaceuticals, particularly those derived from human plasma. Grifols operates a robust network of plasma donation centers, primarily in the United States, where it sources its primary raw material. The company's meticulous process involves collecting plasma from donors, which is then transported to sophisticated manufacturing facilities. Here, this vital fluid is fractionated into various components used to create life-saving treatments. These treatments address a spectrum of conditions, including hemophilia, immune deficiencies, and neurological issues, highlighting Grifols' integral role in advancing healthcare solutions. Grifols' business model is astutely designed to capitalize on the high demand for plasma-derived therapies, ensuring a steady stream of revenue. By vertically integrating its operations—from plasma collection through to product distribution—Grifols maintains stringent quality control and operational efficiency, driving down costs and enhancing margins. The company's segmentation includes Bioscience, which focuses on plasma-derived therapies; Diagnostic, which involves manufacturing tools and reagents for clinical analysis; and Hospital, which manages pharmacy and healthcare logistics products. Furthermore, the company has ventured into bio supplies, supplying biological materials for non-therapeutic use to life-science research. With a deep commitment to innovation and strategic acquisitions, Grifols stays ahead in the competitive biopharmaceutical landscape while fostering a direct link between donor generosity and patient needs, ensuring that its growth story has a profound impact on global health.

View GIFLF Analysis

GIFLF Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

US	Johnson & Johnson NYSE:JNJ	Pharmaceuticals
US	Berkshire Hathaway Inc NYSE:BRK.A	Financial Services
US	Bank of America Corp NYSE:BAC	Banking
US	Mastercard Inc NYSE:MA	Technology
US	UnitedHealth Group Inc NYSE:UNH	Health Care
US	Exxon Mobil Corp NYSE:XOM	Energy
US	Pfizer Inc NYSE:PFE	Pharmaceuticals
US	Palantir Technologies Inc NYSE:PLTR	Technology
US	Nike Inc NYSE:NKE	Textiles, Apparel & Luxury Goods
US	Visa Inc NYSE:V	Technology
CN	Alibaba Group Holding Ltd NYSE:BABA	Retail
US	JPMorgan Chase & Co NYSE:JPM	Banking
US	Coca-Cola Co NYSE:KO	Beverages
US	Walmart Inc NYSE:WMT	Retail
US	Verizon Communications Inc NYSE:VZ	Telecommunication
US	Chevron Corp NYSE:CVX	Energy

	Johnson & Johnson NYSE:JNJ	US
	Berkshire Hathaway Inc NYSE:BRK.A	US
	Bank of America Corp NYSE:BAC	US
	Mastercard Inc NYSE:MA	US
	UnitedHealth Group Inc NYSE:UNH	US
	Exxon Mobil Corp NYSE:XOM	US
	Pfizer Inc NYSE:PFE	US
	Palantir Technologies Inc NYSE:PLTR	US
	Nike Inc NYSE:NKE	US
	Visa Inc NYSE:V	US
	Alibaba Group Holding Ltd NYSE:BABA	CN
	JPMorgan Chase & Co NYSE:JPM	US
	Coca-Cola Co NYSE:KO	US
	Walmart Inc NYSE:WMT	US
	Verizon Communications Inc NYSE:VZ	US
	Chevron Corp NYSE:CVX	US

	Johnson & Johnson NYSE:JNJ	205.78 USD -0.74%
	Berkshire Hathaway Inc NYSE:BRK.A	750 560 USD 0.07%
	Bank of America Corp NYSE:BAC	55.97 USD 0.16%
	Mastercard Inc NYSE:MA	576.35 USD 0.11%
	UnitedHealth Group Inc NYSE:UNH	324.8 USD -0.11%
	Exxon Mobil Corp NYSE:XOM	119.42 USD 1.07%

	Franklin Covey Co NYSE:FC	16.83 USD -1%
	Mohawk Industries Inc NYSE:MHK	108.93 USD 0.32%
	Ardmore Shipping Corp NYSE:ASC	10.71 USD -0.74%
	ASGN Inc NYSE:ASGN	48.92 USD -0.29%
	Skyworks Solutions Inc NASDAQ:SWKS	64.48 USD -1.16%
	Weatherford International PLC NASDAQ:WFRD	79.83 USD -0.8%

	Johnson & Johnson NYSE:JNJ	205.78 USD -0.74%
	Bank of America Corp NYSE:BAC	55.97 USD 0.16%
	Mastercard Inc NYSE:MA	576.35 USD 0.11%
	Salesforce Inc NYSE:CRM	263.43 USD -0.45%
	Abbvie Inc NYSE:ABBV	228.79 USD 0.39%
	Home Depot Inc NYSE:HD	344.97 USD -0.41%

Grifols SA
OTC:GIFLF